Doubling of grants to UN food aid agency urged

from the Financial Times

A report from an UK parliament committee asks for the doubling of aid to the UN's World Food Programme. - Kale
By Javier Blas in London

Donations to the United Nations' World Food Programme must double to secure aid for those pushed into poverty by rising food and fuel prices and to compensate for higher procurement costs, a report warned yesterday.

The UK parliament's International Development Committee said that significant increases to the WFP's budget would probably be needed in the short term and sustained over the years. "The usual annual total of $3bn [€1.9bn, £1.5bn] in voluntary contributions may need to double."

Last year, the WFP received donations of $2.7bn, up from $1.7bn in 1998. After mounting an appeal this year, the WFP received $2.6bn in the first six months of 2008 and is likely to need about $6bn.

The report is the first to look at the WFP's future financial needs. It suggests that the Rome-based agency must sustain over the medium term this year's emergency appeal for extra funds. Although the WFP is likely to raise enough money this year, it is unclear whether it could continue to do so in subsequent years.

Diplomats said that some of this year's large donations, including one of $500m from Saudi Arabia, looked more like one-off contributions than permanent commitments. John Powell, WFP deputy executive director, said: "They [donors] need to recognise that this is not a passing storm, but something that is going to stay with us."